on the crypto
The Ethereum cryptocurrency has been making a lot of talk in recent weeks. The reason? The Ethereum network has moved from POW to POS consensus protocol. More than a simple change of letter, this migration is important from an environmental point of view. The pressure is now on other cryptocurrencies to make the same transition. Let's see which ones.
Migration to POS, an environmental issue
POW (“Proof-Of-Work”) refers to the consensus protocol that a blockchain uses to validate blocks of transactions. This protocol therefore mainly concerns mining. The POW model is the oldest. It is used by Bitcoin, the first global cryptocurrency. Although POW is an effective model, it is far from efficient. In practice, the same result could be achieved with greater energy efficiency.
In reality, a blockchain working on a POW model puts all the miners on its network in competition. Each miner must therefore use very significant computing resources. The first who finds the "mathematical solution" (called proof of work) validates the block and pockets a reward.
The POS model is very different
Miners are chosen based on the amount of cryptocurrencies they stack. There is no "direct" competition between miners. For miners, the goal is not to have the largest computer arsenal, but to participate as much as possible in the functioning of the network through the staking.
In September, the Ethereum network made the long-awaited transition. “The Merge” took place successfully on September 15, 2022 and the Ethereum blockchain has been using the sober SOP model ever since. With this migration, the developers claim that the power consumption of the network will decrease by 99,9%. It's not insignificant, is it?
The Ethereum co-founder is "optimistic" about Dogecoin's adoption of the SOP
Ethereum is the second largest cryptocurrency in the world by capitalization. Its migration was therefore scrupulously observed by the entire cryptosphere and by the developers. Now that Ethereum is a POS cryptocurrency, one wonders if other cryptocurrencies will follow suit.
Dogecoin, the largest meme coin
As mentioned in a previous article, Dogecoin is now the second cryptocurrency in the world to operate on a POW model. Indeed, after Bitcoin, Dogecoin is the POW cryptocurrency with the largest capitalization. It is therefore not surprising that observers are wondering about a possible Dogecoin migration. Especially since this issue has been discussed a lot in recent years.
As a reminder, Dogecoin is a meme coin. Indeed, the development of this cryptocurrency was more of a technical challenge than a real desire to create a new currency. Then, over the years, this cryptocurrency has established itself in the panorama. It must be said that Dogecoin can count on great sellers like Elon Musk, for example! In fact, the whimsical American CEO never misses an opportunity to highlight Dogecoin on Twitter. At the time of writing, Dogecoin is the 8,4th largest cryptocurrency in the world with a capitalization of € XNUMX billion. There quotation of the Dogecoin cryptocurrency is 0,06 euros.
So, are Dogecoin developers considering migrating to a POS model? Ethereum co-founder Vitalik Buterin is "optimistic".
"I am also optimistic that Dogecoin will migrate to a Proof-Of-Stake model in the near future." Vitalik Buterin, co-founder of Ethereum.
